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An employee who has worked for his firm for 30 years can retire right now and receive a constant annual benefit of $45,000. He has
An employee who has worked for his firm for 30 years can retire right now and receive a constant annual benefit of $45,000. He has a final pay plan that pays his average salary over his final five years x 2 percent x years of service. He has decided he will keep working five more years but only if by doing so his retirement benefits will grow at 6 percent per year. How much would his expected average salary (to the nearest dollar) have to be over the next five years to keep him working?
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